Bankruptcy is the liquidation of the merchant debtor's assets and distribution to creditors. EBL Article 156 et seq.
Those Who Can Request Bankruptcy
- Creditor (50,000 TL+ creditor)
- Debtor himself (legal obligation: TTK Article 376)
- Public prosecutor (public interest)
Reasons for Bankruptcy
- Debts Exceeding the assets (insolvency)
- Failure to pay due debts
- Rejection/non-approval of the concordat
Process
- Credee application to the commercial court of first instance
- Depot decision: If the receivable is paid within 7 days, the bankruptcy will be declared
- If not paid, the bankruptcy decision
- Bankruptcy estate consists of
- List of creditors
- Liquidation of assets (enforcement)
- Order table + distribution
Direct Bankruptcy (Art. 177)
Direct bankruptcy can be requested without enforcement proceedings. Conditions: merchant, smuggling, suspicion of fraud, etc.
Supreme Court 23. HD
23. HD accepts that a bankruptcy request is a "last resort", that other methods should be tried to collect the receivable, and that a bad faith bankruptcy request may result in compensation.
Consequences of Bankruptcy
- All enforcement proceedings stop
- The assets pass to the table
- The debtor loses the power of disposition
- The outcome of the contracts is table.
Bankruptcy/commercial lawyer is recommended to the administration.